Why has Iran not been successful in building refineries?

According to Energy Press, despite the continuation of refinery construction plans in Iran, serious questions are raised about the economic and technical justification of this approach. According to oil industry experts, given the global trend of energy transition and the decline in demand for petroleum products, traditional refinery construction in Iran may not meet future needs.
Mehdi Mohseni, an activist in the oil and refining sector, stated in an exclusive interview with this media outlet that the main focus should be on increasing the productivity of existing refineries and building additional units in order to keep pace with changes in the energy market.
The global trend of energy transition threatens traditional refineries
Referring to the global trend of energy transition that has accelerated in recent years, he emphasized that small-scale refineries with a capacity of less than 70,000 to 80,000 barrels per day and without additional units will be eliminated from the competition due to reduced profitability and lack of competitiveness. Demand for heavy products such as fuel oil will also decline in the future, and refineries that still rely on the production of these products will face serious challenges.
He also pointed to the global trend of moving towards petrorefineries that produce petrochemical feedstocks instead of fuels such as gasoline and diesel. Examples such as the 700,000-800,000-barrel units in China and the 400,000-barrel units in Saudi Arabia indicate this change in direction. Mohseni suggested that Iran should also move towards building such units to create more added value.
Demand management is the way to salvation
Mohseni confirmed this view regarding the statements of former oil minister Bijan Namdar Zanganeh, who had considered traditional refinery construction obsolete in the world, adding: “The country’s main problem is not in the supply sector, but in demand management.” He pointed to the excessive consumption of fuel, especially gasoline, due to the inefficient design of domestic vehicles, and said: “If vehicle consumption is updated and approaches global standards, the country’s current refineries can also meet domestic needs.” He talks about the efforts made in the field of desulfurization and increasing the quality of gasoline, but warns that without reforming the consumption structure and renewing the aging fleet, even the most modern refineries will not be able to solve the problems of air pollution and fuel shortages on their own.